The European Commission’s regulation of markets in crypto-assets is coming. The EU is preparing to implement MiCA (Markets in Crypto-assets), a series of sweeping regulations that could seriously impact the crypto industry across Europe.
EU markets in crypto-assets regulation (MiCA) was finalized in September. In October, European Parliament officials voted 28 to 1 in favor of the bill, and it has one last vote to go.
The sweeping bill covers everything from stablecoin to cryptocurrency mining to NFT to money laundering. But it also has clauses that could affect crypto-influencers as well.
On Nov. 1, Circle’s director of EU strategy and policy, Patrick Hansen, drew attention to one such clause. He promises problems for opinion leaders who share their views on social media about certain crypto-assets. If it turns out that they profit from their actions, once MiCA takes effect, it will be considered market manipulation in the EU, Hansen noted.
The EU is planning a big cryptocurrency sweep.
Exactly which publications will fall under the new rules is not yet clear. Neither is how the initiative will be checked. But the list may even include memes, such as the dog picture that Elon Musk recently posted on his Twitter account.
Reaction to the proposal has also been mixed among European Parliament officials. But those who voiced support for it said that crypto-influencers’ activities should be more transparent.
Regulators believe it is a step forward that will make the region more attractive to the crypto industry. On Nov. 2, MiCA rapporteur Stefan Berger said the rules are necessary if “Europe wants to be a major player in the cryptocurrency game.”
Crypto industry under MiCA’s microscope
MiCA is going after DeFi hard in the name of consumer protection, but it looks more like an attempt to centralize and control all aspects of the cryptocurrency market.
The EU initiatives are also aimed at regulating Stablecoins and their issuance, and controlling crypto-asset service providers (CASPs). This could lead to the fact that only fully regulated exchanges and brokers can officially operate in Europe.
The bill also proposes introducing cryptocurrency cards to protect consumer rights, but MiCA’s real motivation is to prevent money laundering. To that end, the EU is seeking to bring the regulation of cryptocurrency companies in line with the same framework that regulates banks.
We previously reported that BTC is giving bitcoin holdings MicroStrategy a chance to get out of their losses.
Apple forced Coinbase to remove NFT transfers
Apple NFT news: Coinbase said Apple is demanding a 30% tax on the gas fee used for NFT transfers. NFT coinbase wallet users can no longer send NFTs due to Apple’s interference.
Coinbase said it could not meet the requirement even if it tried because the iPhone maker’s own in-app purchasing system does not support cryptocurrency. Note that the current stock price of Apple was not affected by the situation.
Users affected by this decision, i.e. iPhone owners, will find it “much harder to transfer this NFT to other wallets. Coinbase added that the blockage may have been an oversight, and urged Apple to contact the company with any questions.
Coinbase first announced the NFT coinbase wallet in December 2021, giving users access through the app to trading platforms such as OpenSea. The NFT token issuance and trading platform was conceived as a peer-to-peer marketplace equipped with social platform functionality. This feature should help community members find new NFT tokens and collections.
In November, Apple updated the App Store’s NFT rules, so developers can now sell tokens they have placed on the App Store. However, the new rules prohibit using cryptocurrencies, cryptocurrencies, and QR codes to unlock features in the app. Also, development companies must have a license to operate in the country where the app is sold.
Earlier, we reported that crypto investors intended to achieve the arrest of FTX through protests.
Tether says its USDT loans are “over-secured”
Tether, the issuer of the USDT stablecoin, claimed that the USDT loans it issues are characterized by overcollateralization. This was the project’s response to a recent Wall Street Journal study. In it, WSJ analysts expressed fears that Tether’s current lending practices could trigger a new crisis in the crypto industry.
According to WSJ, Tether lends its own USDT Coins to customers without exchanging them for hard currency. As a consequence, in the event of a crisis, the company may not have enough long-term liquid assets to repay the money you borrow USDT and redeem these coins. So it makes sense to apply for USDT loans to companies that offer the opportunity to pledge various stocks of large companies. For example, at the current stock price of Amazon or another corporation.
Such fears are understandable amid a steady stream of news about the collapse of the FTX crypto exchange and its implications for the crypto market. In particular, the ensuing market collapse may have also contributed to the “erosion” of Tether’s collateral.
In response to these accusations, the project published a post on Twitter with the eloquent title “The hypocrisy of the mainstream media falling asleep at the information wheel.”
The project’s management believes that the WSJ analysts are completely mistaking the USDT kinoin itself for the collateral backing it. Meanwhile, “Tether’s secured loans are characterized by over-collateralization and are even backed by additional equity if necessary.”
According to the company, 82.45% of its reserves are currently held in U.S. Treasuries and other cash equivalents. Meanwhile, the decline in the USDT token is irrelevant to the value of loan collateral. Such fluctuations in quotations are only relevant to the exchange value of the coin itself.
Recall that the project boasts the longest list of accusations against it about insufficient collateralization of its stablecoins and/or lack of transparency of information on this topic.
We previously reported that hackers have stolen $3.37 billion worth of cryptocurrencies since the beginning of the year.
The market of a metaverse company has reached almost 150 virtual worlds
The virtual reality industry has grown to nearly 150 digital worlds in the fourth quarter of 2022, researchers found. The volume of a metaverse company at the end of IV quarter of 2022 was 148 pieces. This was reported by analysts from the consulting firm Metaversed. However, so far, the current stock prices of Meta do not react.
According to the researchers’ calculations, most of the users remain on the projects of Web2. For example, the largest virtual world is fixed in the game-meta universe Roblox, which accounts for about 202 million monthly active players. The price of cryptocurrency for metaverse against this background is growing.
The video game Minecraft is in second place with 174 million active players. Fortnite, with 81 million players, was the third one. Projects with a focus on the Web3 model have a much smaller user audience, but the number of these worlds is much higher than the video games of the Web2 model.
For example, the blockchain game Axie Infinity attracts only 700,000 players per month. In second place is Upland with 600,000 users, and NFTWorlds, a virtual world with 500,000 users, takes third place.
Game metaverse is not a toy
The game industry, for the most part, is skeptical of metaverses and does not see them as different from traditional video games. As BeInCrypto editorial staff wrote earlier, Xbox CEO Phil Spencer thinks that the current implementations of meta-villages are more like “a cheaply made video game”.
Herman Narula, CEO of Improbable, the developer of the metaverse, partially agreed with Spencer. He acknowledged that video games are already inherently mini-metagons. However, according to Narula, meta-villages posit the idea of combining experiences. That said, he agrees that metaverses are many times more attractive to sports leagues and fashion brands than they are to video game developers.
We previously reported that the largest bitcoin miners owned banks $4 billion.
- Coronavirus1 year ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Stock Markets8 months ago
WeLion Cooperates with Nio to Produce Semi-Solid Battery
- Cryptocurrency12 months ago
Arvalex Token Launches It’s PreSale to Shake Up The Metaverse
- Forex4 months ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Cryptocurrency1 year ago
Crypto Oversight Road Map Is Set by U.S. Banking Regulators
- Cryptocurrency1 year ago
Crypto & NFT Influencer Marketing: Hire an Agency or Do It Yourself?
- Economy1 year ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency1 year ago
Emirates Post Group (EPG) to Launch NFT Stamp on December 2